Kenya | Employment Tax | Finance Bill 2024


July 31, 2024

Employment Tax

Kenya | Finance Bill 2024

The Finance Bill 2024, Withdrawn

The President of Kenya declined to assent to the controversial and contentious Finance Bill, 2024 (“the Bill”) and returned it to parliament with a recommendation to delete all clauses contained in the Bill – “meaning total withdrawal/rejection of the Bill”. The president reached the decision to reject the Bill following countrywide protests as expression of dissatisfaction with the contents of the Bill by citizenry. Had the president assented to the Bill, the proposed tax measures therein were meant to take effect from 1 July 2024.

The Bill had proposed a raft of amendments to all Kenyan Tax Acts to include the Income Tax Act, the Value Added Tax Act, the Tax Procedures Act, the Excise Duty Act and the Miscellaneous Fees and Levies Act.

With the expiry of all prescribed timelines within which the Bill referred to parliament should have been debated and resubmitted to the president for assent, it simply means all proposed tax measures therein become null and void.

In the event the government desires to bring back some of the tax measures that were contained in the original Bill, parliament will have to introduce any such measures through a completely new Finance Bill or Miscellaneous Tax Amendments Bill. Any new Bill must follow all statutory Bill making processes to include mandatory public participation.

Contact us

For a deeper understanding on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Andrew Ondieki
Director

Kennedy Kyalo
Senior Manager

Martin Wambugu
Manager

Mercy Migwi
Senior Associate

Ruth Mayenga
Associate

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